You can expect to spend more on a San Jose landlord insurance policy than you do when you occupy the home and have a homeowner policy, but the higher cost is well worth the investment. You’re protecting your property against all the catastrophes that are hard to imagine as well as the liability that comes with renting out property to tenants.
Property damage is expensive and sometimes hard to avoid. Protect your investment against potential damages by insuring it.
Damage Covered by Landlord Insurance
If there’s a major weather event such as hail or a windstorm that damages your property, a good landlord insurance policy will cover that loss. Most policies will also cover damage from an explosion or civil unrest, smoke damage, vandalism, and water damage.
Any of your own personal property that is inside the rental home such as appliances will also be covered. If a stove is damaged during a fire, for example, your insurance will repair or replace it. One good tip is to keep an inventory, with pictures, of what belongs to you when you’re renting out a San Jose home.
You’ll want to make sure your landlord insurance policy covers loss of rent as well. If something happens to your rental home and your tenants have to move out while the damage is repaired, you won’t be able to collect any rent from them. Your loss of rent coverage will essentially pay the rent so your financial burden isn’t exacerbated.
Earthquake Insurance for San Jose & Silicon Valley Rental Homes
Your insurance policy doesn’t cover everything. Optional inclusions for floods, bed bugs, and other potential losses are available as separate riders.
If you read various reports from FEMA, you’ll learn that earthquakes are expected to cause more than $6 billion worth of damage annually, and California is where most of that damage is expected to occur. You need insurance for your rental properties, otherwise you’ll find yourself with a huge loss that’s nearly impossible to recover from.
In San Jose and Silicon Valley, the average annual cost of earthquake insurance is $2,000 per $500,000 of coverage. Talk to your insurance agent to make sure you’re fully covered against this type of potential damage.
Consider a Business Owners Policy for Multiple San Jose Rentals
A Business Owners Policy (BOP) is ideal for landlords with multiple units in a building, or several rental property locations. It combines your property insurance with the general liability insurance that you need as an owner. Your property and your real estate business will be protected against claims that might come against you. It’s an extra level of protection that you should consider when you own multiple rental homes.
San Jose and Silicon Valley Renters Insurance
Any damage that occurs to your property will be covered by your own policy, but the tenant’s personal belongings likely will not be covered. It’s not a bad idea to require renters insurance so you can be sure they’re covered. This is good for them and it’s also good for you because their own policy will be used first if there’s a loss that’s due to their own liability.
If you need a good referral to an insurance agent, we’d be happy to help. We can also talk about the insurance that your specific rental property might need. Please contact us at Aborn Properties for all your San Jose and Silicon Valley property management needs.